LONDON

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ABSTRACT: A REPORTER IN EUROPE about Great Britain which is suffering from a loss of faith. The latest crises include 2 1/2 million unemployed, race riots in Brixton, Ulster close to civil war, Labour turned viciously against it self, a Prime Minister devoted to what is probably , best described as up-against-the-wall economics. The English produced the most class-ridden society in Europe, and in some ways the most self-deluded. The difference in England now has less to do with the loss of power abroad than with the fact that a whole new class has started demanding to run the country at home. There have been changes in the leadership of both big political parties, and for the first time these changes involve class as much as policy. Tells about the Labour Party split after the January Wembley conference. There is no logical reason for England to be going broke. It is as if the English themsleves, in a kind of misguided native pride, conspired to keep their industry out-of-date. After the war they seem to have decided they had nothing to learn from the technology of neighbors like the French, Swedes or Germans. Tells about Prime Minister Thatcher's misguided economic policies. England has never had a real social revolution. Business is still despised in England. Discusses reasons for lack of active capital investment in industry. Discusses small-scale but widespread labor corruption. It's impossible to calculate the cost. Tells about arguments against the British trade unions. As for education, England has been unique in post-war Europe for the inequities of its school system. Recent changes have drawbacks.